Is this all that our government can do to help?
Here are some highlighted major flaws in Obamas Plan. As you will see below, most people will not qualify to take advantage of his proposed initiative.
1. Applicants for assistance will have to meet tough government guidelines to receive the benefits of Obamas plan. The standards are intended to discourage financially-healthier homeowners from purposely withholding mortgage payments to try to qualify for government help.
Note:(most people aren't withholding payments intentionally for no reason, the lenders are telling them to do this before they will help them, and they the lenders are so overwhelmed that they still do not help them).
2. Families whose income has significantly been cut -- will not be able to qualify because they just won't earn enough income to qualify for a new refinance loan.
3.The goal of the plan would be to make mortgages more affordable for qualifying homeowners.
Note: (Who qualifies anymore? We're in a recession)
4. It won't help many people where house prices have fallen most: California, South Florida, Las Vegas and Phoenix. A lot of these people won't be eligible for refinancing because they owe much more than their houses are worth.
5. It provides a path to refinancing for people whose loans were securitized by Fannie Mae or Freddie Mac. Millions of homeowners have mortgages that were securitized, but not by Fannie Mae or Freddie Mac. The refinancing for “underwater” homeowners — those whose outstanding mortgages are larger than the worth of their homes — is available only to those with loans backed by Fannie and Freddie.*
6. "We must stem the spread of foreclosures and falling home values for all Americans and do everything we can to help responsible homeowners stay in their homes." People who got conforming mortgages and who have never fallen seriously behind on the monthly payments might qualify to refinance at lower interest rates -- even if they owe as much as the house is worth."
Note: Responsible Home Owners, I love it! So everyone who has been cut from their job or demoted, is now considered irresponsible home owners???? Unbelievable!!
I admit there are some people that were irresponsible to began with, but what about those that are victims to the recession?
7. Few mortgages for more than $417,000 will qualify for refinances because that is the conforming limit.
8. "David John, a housing expert at the Heritage Foundation, wondered how servicers, who are already swamped with refinancing requests from solvent homeowners, could handle the flood of new demand. “They’re going to be overwhelmed,” he said."
NOTE TO EVERYONE: They already are overwhelmed!!!!
This is an Article that I found that is a good example of Why Obamas Plan will not help most home owners.Lasvegasnow. com) Also on LasVgasNow. com
Obama Unveils $75 Billion Mortgage Relief Plan
Wally Grogitsky, owner of Certified Carpet Cleaning, is getting a dream home ready for a first time home buyer.
Grogitsky makes sure everything is cleaned up for the installers so this house is ready to become a home. Unfortunately he has to do the same with his own home - one he is trying desperately to sell, "We need to pay what we owe, however we can."
The economy has hit his carpet cleaning business hard, making bills difficult to pay, "If you are not making money, you are not getting your carpets cleaned. Sorry, you'll go rent a Rug Doctor or not get it cleaned at all. I become a luxury, not a necessity."
Lenders are not willing to offer many options to homeowners, leaving them little choice -- try to sell or face foreclosure. Grogitsky is hoping a short sell will work for his family, "We were not greedy. We were not crazy. We were not misled by anyone. We got a good, fixed rate on a good house, but the market fell out from underneath that house and we cannot refinance to lower the payment or do anything that would make it better."
When business was good, Grogotsky says his family could afford the mortgage. But times have changed. Even though business is down, his higher income makes it hard to get help. He's forced to choose between his house, and paying for a child's college tuition.
Grogitsky hopes, over time, he's able to work out of the hole the current economy created. While the Obama plan probably won't help him, he hopes it will help others, "That is why we have someone in the office now -- in the White House office -- that thinks he knows what he is doing, and I hope he does."
Grogitsky says if he were able to lower his interest rate, lowering his monthly payment, he would be able to stay in his home. Lenders are waiting to see the Obama plan will require them to change mortgage terms get federal funding.
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